Government advances fiscal overhaul to align with EU standards
The Moldovan Government will sustain its fiscal reform trajectory while continuing structured consultations with stakeholders, Prime Minister Alexandru Munteanu announced at the Executive meeting on June 24. The prime minister emphasized that the comprehensive overhaul directly impacts the national economy, foreign direct investments, and relations with international partners.
According to Munteanu, the structural update links public sector efficiency and expenditure cuts to the country's standing with the International Monetary Fund and credit rating agencies. The state requires a simpler, fairer, and more competitive tax framework to stimulate business development and generate higher-paying domestic jobs.
The prime minister cited unwavering support from European partners reconfirmed during the EU–Moldova Summit on June 22. He stated that institutional accession depends heavily on the pace of domestic structural reforms.
Regarding agricultural Value Added Tax (VAT), Finance Minister Andrian Gavriliță explained that authorities are designing measures to mitigate financial pressure on producers. The state will introduce monthly account VAT refunds to safeguard producer liquidity.
The Ministry of Finance is finalizing a reverse-charge mechanism allowing agricultural producers to sell at an effective zero rate. Gavriliță noted that the state's primary objective is facilitating exports rather than collecting agricultural VAT.
Addressing the proposed 20% VAT on pharmaceuticals, Gavriliță confirmed that the ministry will not enforce the measure without broad support. The financial architecture aims to simplify taxation and curb tax evasion, with the final draft pending feedback from local authorities and civil society.
Translation by Iurie Tataru
